The services sector in China continued its expansion in April, albeit at a slower rate, according to a recent survey by Caixin. The services PMI score was reported as 52.5, which is a slight decrease from 52.7 in March. However, it is still notably above the critical level of 50, which marks the divide between growth and contraction.
In accordance with new business trends, foreign demand for Chinese services also saw a rise in April. The rate of growth in new export business was the fastest in ten months. Improved conditions in external markets and an increase in tourism activities are considered to be the drivers behind this surge in overseas business.
On the other hand, the amount of outstanding work in April remained relatively stable. Due to this absence of capacity pressure, Chinese service providers found themselves reducing their staffing levels for the third consecutive month in April. The panel mentioned that this reduction in the workforce was a combination of voluntary resignments and forced redundancies.
